YO Protocol suffered an abnormal swap transaction, with approximately $3.84 million worth of stkGHO being exchanged for only $122,000 worth of USDC.

The team has purchased GHO and re-deposited it into stkGHO in an attempt to salvage the situation. Analysis suggests the incident was caused by a combination of two factors: 1) the estimated output value submitted by the initiator was incorrect, rendering the slippage protection ineffective; 2) the transaction path was abnormally set, passing through a high-fee, low-liquidity pool, resulting in significant fee extraction and price shocks.